project control farrokh alemi, ph.d. lee baliton

Project ControlProject Control

Farrokh Alemi, Ph.D.Farrokh Alemi, Ph.D.

Lee BalitonLee Baliton

Course on Project Management

PurposePurpose

Monitor progressMonitor progress Corrective actionCorrective action

Course on Project Management

Why Projects FailWhy Projects Fail

ComplexityComplexity Regulation oversightRegulation oversight Poor communicationPoor communication Resistance to changeResistance to change Creeping scopeCreeping scope Lack of project ownershipLack of project ownership Shifting organizational prioritiesShifting organizational priorities Failure to meet customer needsFailure to meet customer needs

Course on Project Management

MetricsMetrics

Estimated time to completionEstimated time to completion Budget at completionBudget at completion

Course on Project Management

MetricsMetrics

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Course on Project Management

MetricsMetrics

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Health statusHealth status Cost of careCost of care

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Health statusHealth status Cost of careCost of care

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Health statusHealth status Cost of careCost of care

Employee satisfaction with IT services

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Lower morbidity due to fewer Lower morbidity due to fewer

medication errorsmedication errors Cost of careCost of care

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Lower morbidity due to fewer Lower morbidity due to fewer

medication errorsmedication errors Cost of careCost of care

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Lower morbidity due to fewer Lower morbidity due to fewer

medication errorsmedication errors Cost of careCost of care

Course on Project Management

Metrics (example)Metrics (example)

Estimated time to completionEstimated time to completion Budget at completionBudget at completion Impact on patientsImpact on patients

Satisfaction with careSatisfaction with care Lower morbidity due to fewer Lower morbidity due to fewer

medication errorsmedication errors Cost of careCost of care

Monitor project’s progress as well as impact on patient

outcomes

Course on Project Management

Earned Value ManagementEarned Value Management

Definition of termsDefinition of terms Calculation of earned valueCalculation of earned value Reporting of earned valueReporting of earned value

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value

Planned value

0

50

100

150

1 2 3 4 TimeNow

6 7 8 PlannedEnd

Months since start

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Planned value

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value

Planned value

0

50

100

150

1 2 3 4 TimeNow

6 7 8 PlannedEnd

Months since start

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Planned value

Project end

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value

Planned value

0

50

100

150

1 2 3 4 TimeNow

6 7 8 PlannedEnd

Months since start

Co

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Planned value

Project end

$60,000 planed

up to month 4

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost

CostIndirect Cost Direct Cost Actual

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

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ars

Actual cost Planned value

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

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Actual cost Planned value

Solid line

shows

experience to

date

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

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usa

nd

s o

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ars

Actual cost Planned value

Solid line shows

experience to

date

Dashed line

shows forecast

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

st i

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usa

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s o

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ars

Actual cost Planned value

Budget at completion

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Rate of PerformanceRate of Performance Earned value Earned value

ePerformanc of Rate valuePlanned valueEarned

project ofstart since timeActual

completed taskscritical planned ofDuration ePerformanc of Rate

Course on Project Management

Example Calculation of Rate Example Calculation of Rate of Performanceof Performance

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Earned valueEarned value Rate of performanceRate of performance

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

st i

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ho

usa

nd

s o

f D

oll

ars

Actual cost Planned value Earn value

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Earned valueEarned value Rate of performanceRate of performance VarianceVariance

CostCost ScheduleSchedule

valuePlanned- valueEarned Variance Schedule

cost Actual- valueEarned VarianceCost

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Earned valueEarned value Rate of performanceRate of performance VarianceVariance

CostCost ScheduleSchedule

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

st i

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ho

usa

nd

s o

f D

oll

ars

Actual cost Planned value Earn value

Cost variance

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Earned valueEarned value Rate of performanceRate of performance VarianceVariance

CostCost ScheduleSchedule

0

50

100

150

200

1 2 3 4 TimeNow

6 7 8 PlannedEnd

ActualEnd

Months since start

Co

st i

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ho

usa

nd

s o

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oll

ars

Actual cost Planned value Earn value

Schedule variance

Course on Project Management

Definition of TermsDefinition of Terms

BaselineBaseline Planned valuePlanned value Actual costActual cost Earned valueEarned value Rate of performanceRate of performance VarianceVariance IndexIndex

Cost performance indexCost performance index Schedule performance indexSchedule performance index

valuePlanned

valueEarned Index ePerformanc Schedule

cost Actual

valueEarned Index ePerformancCost

Course on Project Management

Estimate at CompletionEstimate at Completion

Index ePerformancCost

Completionat Budget Completionat Estimate

Course on Project Management

Estimate Time to CompleteEstimate Time to Complete

Index ePerformanc Schedule

Estimate Time Original Complete toTime Estimate

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value 10000

Actual cost 15000

Earned value ?

Cost variance ?

Schedule variance ?

Cost performance index ?

Schedule performance index ?

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value $10,000

Actual cost $15000

Earned value $5,000

Cost variance ?

Schedule variance ?

Cost performance index ?

Schedule performance index

$5,000 .50 $10,000 valueEarned

ePerformanc of Rate valuePlanned valueEarned

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value $10,000

Actual cost $15000

Earned value $5,000

Cost variance -$10,000

Schedule variance ?

Cost performance index ?

Schedule performance index $10,000- $15,000-$5,000 VarianceCost

cost Actual- valueEarned VarianceCost

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value $10,000

Actual cost $15000

Earned value $5,000

Cost variance -$10,000

Schedule variance -$5,000

Cost performance index ?

Schedule performance index

$5,000- $10,000-$5,000 Variance Schedule

valuePlanned- valueEarned Variance Schedule

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value $10,000

Actual cost $15000

Earned value $5,000

Cost variance -$10,000

Schedule variance -$5,000

Cost performance index 33%

Schedule performance index

%33$15,000

$5,000Index ePerformancCost

cost Actual

valueEarned Index ePerformancCost

Course on Project Management

ExampleExample

Week 1

Rate of performance 50%

Planned value $10,000

Actual cost $15000

Earned value $5,000

Cost variance -$10,000

Schedule variance -$5,000

Cost performance index 33%

Schedule performance index 50%

%50$10,000

$5,000Index ePerformanc Schedule

valuePlanned

valueEarned Index ePerformanc Schedule

Course on Project Management

Taking ActionTaking Action

Reconfirm planReconfirm plan Assess project performanceAssess project performance Take corrective actionTake corrective action Keep people informedKeep people informed

Take Home LessonTake Home Lesson

Project control requires monitoring Project control requires monitoring progress using earned valueprogress using earned value